Going Global, At Last
After seven years of being restricted to investing in Mexican bonds, the country's pension funds can now put their assets into equities and foreign securities.
Mexican regulators have finally cleared the way for the
country?s pension funds to begin investing in equities and
foreign securities, taking two big strides toward building a
more sophisticated and diversified asset management industry.
The changes, which followed years of highly politicized
negotiations involving the government, Congress, fund
management firms and labor unions, relax controls over one of
Latin America?s most tightly regulated pension fund systems.
|US markets will benefit
regulatory changes in Mexico.
Although regulators are sticking to their reputation for
extreme caution by limiting funds? exposures to equities and
international markets, the changes are a significant departure
for the pension fund industry that since its inception could
only invest in Mexican government bonds and highly-rated
Now that pension fund managers can begin buying shares, they
could give the stock market a considerable boost. More
controversially, billions of dollars in Mexican workers?
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.